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Calculate your monthly car loan EMI, total interest payable, and view the full amortization schedule before you drive home your new car.
Enter your loan amount, interest rate, and tenure
Fill in your loan amount, interest rate, and tenure to see your monthly EMI and amortization schedule.
Car loans are usually secured against the vehicle.
Standard reducing balance EMI formula.
A car loan EMI calculator is an online tool that helps you compute the Equated Monthly Instalment (EMI) you need to pay towards your car loan. It takes into account the principal loan amount, the applicable interest rate, and the tenure to determine the monthly outgo .
EMI stands for Equated Monthly Instalment. It is the fixed amount you pay to the lender each month until the car loan is fully repaid. Each EMI consists of two components: the principal repayment and the interest payment .
In the early months of your loan, a larger portion of your EMI goes towards interest. Over time, as the outstanding principal reduces, a larger portion goes towards principal repayment .
| Tenure | Monthly EMI | Total Interest | Total Payment |
|---|---|---|---|
| 1 Year | ₹70,113 | ₹41,356 | ₹8,41,356 |
| 3 Years | ₹25,611 | ₹1,22,002 | ₹9,22,002 |
| 5 Years | ₹16,800 | ₹2,08,011 | ₹10,08,011 |
| 7 Years | ₹13,054 | ₹2,96,550 | ₹10,96,550 |
A longer tenure reduces your monthly EMI but significantly increases the total interest you pay over the life of the loan. Choose your tenure carefully based on your repayment capacity and how long you plan to keep the car .
The EMI is calculated using the formula: EMI = P × r × (1+r)^n / [(1+r)^n – 1], where P is the principal loan amount, r is the monthly interest rate (annual rate ÷ 12 ÷ 100), and n is the total number of monthly instalments (tenure in years × 12) .
Most banks and NBFCs offer car loans for a maximum tenure of 7 years, though some lenders may extend up to 8 years for certain models or customers with excellent credit profiles. A shorter tenure means higher EMI but lower total interest .
Yes, most lenders allow prepayment of car loans after a lock-in period (typically 6–12 months). Prepayment reduces your outstanding principal, which can either lower your EMI or shorten your tenure. Some lenders may charge a prepayment penalty of 2–5% on the outstanding amount .
The down payment is the upfront amount you pay towards the car's price, typically 10–20% of the ex-showroom price. The remaining amount is financed through the car loan, which you repay via EMIs. A higher down payment reduces your loan amount and EMI .
Yes, a car loan appears on your credit report. Making all EMI payments on time positively impacts your credit score, while missed or delayed payments can negatively affect it. A good credit score can also help you negotiate a lower interest rate on your car loan .
Choose based on your monthly cash flow and how long you plan to keep the car. A shorter tenure means higher EMIs but lower total interest — ideal if you can afford the higher monthly outflow. A longer tenure means lower EMIs but significantly higher total interest. Since cars depreciate quickly, a shorter tenure is generally better from a financial standpoint .